Archive: valuation
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Angel Insider: The Best Time to Invest in the Late Stage Secondary Market
By Early Investing on March 7, 2023
The late stage secondary market is the perfect hunting ground for bargains. Take Stripe for example. In 2021, the payment processor raised at around a $95 billion valuation. In 2023, it’s raising at around a $55 billion valuation. And there are many more companies like it that have slashed their valuations dramatically. But why are we seeing these valuation cuts? Is it a sign that companies are in trouble? Overvalued? Or is it something else entirely?…
Our Five Criteria for Evaluating Startups
By Vin Narayanan on May 10, 2022
Hopefully you’ve noticed the changes at Pre-IPO Profits recently. We emailed you an interesting startup investment opportunity last month. This month, we’re bringing you an exclusive webinar about investing in the KingsCrowd Capital Fund. In June, we’ll…
Strong Follow-On Deals Have These Features
By Adam Sharp on October 26, 2021
When I first got into startup investing, I was mostly investing in early-stage deals. Valuations usually fell between $3 million-to-$10 million (with a few exceptions of around $40 million). I was focused on trying to find the potential big winners as early as I could. And I definitely…
The Perfect Environment for Startup Investing
By Adam Sharp on September 28, 2021
While you all know I’ve been a bit frustrated with the high valuations of startups today, there is a lot to be said for investing in this asset class in our current environment. Many bonds are yielding -5% after inflation is…
Market Changes Favor New Startup Investors
By Adam Sharp on June 25, 2021
I’ve now been investing in startups online for seven years. Over that time, I’ve invested in around 125 individual startups and three funds (those funds in turn invested in another 30 startups). The vast majority of deals were early — seed stage, pre-seed or Series A. And over…
When Is a High Valuation Worth It?
By Adam Sharp on May 11, 2021
In recent months, I’ve talked a lot about how expensive some startup rounds are becoming. That doesn’t mean you should avoid every round that looks expensive at first glance. Sometimes startup investments seem expensive when they are…
Why Founders Refuse VC Money
By Andy Gordon on March 31, 2021
Venture capital (VC) investing isn’t all it’s cracked up to be. Last week I talked about the many things that crowdfunding does that appeal to founders and investors alike. Today, I’d like to focus more on the VC side of investing. And why…
San Francisco Startup Valuations Continue to Balloon
By Adam Sharp on March 16, 2021
I’ve been writing about rising valuations for a while now. But this week, I saw a deal that was so crazily priced, I just have to write about it again. This young San Francisco-based startup had about $700k in annual recurring…
How to Handle Silicon Valley’s Rising Valuations
By Adam Sharp on February 16, 2021
It’s getting a little crazy out there in some pockets of the startup investing world. All the Series A deals I’ve seen lately have been much more expensive than they were even a year ago. I recently saw a fast-growing software company raising a Series A with just…
Patience Pays in Startup Investing
By Adam Sharp on February 9, 2021
I recently had my first startup investment go public. But don’t get too excited yet. The company, Plurilock Security, just listed on the Toronto Venture Exchange at quite a tiny valuation — around $15 million. I took the opportunity to add to my position. I really…
Cannabis Stocks: High Growth at Low Prices
By Adam Sharp on January 22, 2021
Cannabis stocks had a rough 2018, 2019, and most of 2020. However, it looks like the bear market may finally be ending now. In the last two months, cannabis stocks have surged higher. The largest cannabis exchange-traded fund (ETF) by assets — the ETFMG Alternative Harvest…
Later Stage Startup Valuations are Rising
By Adam Sharp on January 19, 2021
Most of the deals I get invited to online are early-stage ones — pre-seed, seed, and Series A. But I do see a fair number of Series B and C deals as well. And I’ve noticed that the later the deal is, the higher the valuation tends to…
The Strength of Early-Stage Companies
By Adam Sharp on January 5, 2021
We live in a remarkably disruptive time. New technologies are changing the way almost every industry operates. There’s a lot of opportunity for innovative companies to make a big impact. But we also live in a very unique time when it comes to finance and monetary…
Beware Hot Tech Stocks
By Adam Sharp on December 11, 2020
As you might have heard, Airbnb had its long-awaited IPO (initial public offering) yesterday. Like a lot of hot public offerings this year, it was pure insanity. Airbnb’s IPO shares were initially priced at $68 — so that’s the price that a small group of well-connected…
What to Do When a Startup Goes Public
By Andy Gordon on November 18, 2020
Every investor would love to have my dilemma. One of my First Stage Investor portfolio companies will be listing on a public stock market (also known as going public or IPO’ing) in a couple of months. I first recommended this company back in 2016…
What the New Reg CF Limit Means for Founders
By Andy Gordon on November 5, 2020
I’m doing something different today. I want to give founders some advice. I’ve been alerting every founder I talk to about this. And I’m shocked that just a handful of them are aware of the biggest boon that has come their way in a very long time. So,…